What is Mexshoring?
“Mexshoring” is not a commonly recognized term in the field of business or outsourcing. However, it appears to be a portmanteau or term created by combining “Mexico” and “offshoring” or “nearshoring” to refer to business processes or services being outsourced to Mexico.
- Offshoring: Offshoring typically refers to the practice of a company outsourcing its business processes or services to a foreign country, often one with lower labor costs. Companies engage in offshoring to reduce expenses while accessing skilled labor pools.
- Nearshoring: Nearshoring, on the other hand, is the practice of outsourcing business processes or services to companies in nearby or neighboring countries, usually within the same region or time zone. Nearshoring offers advantages like geographical proximity, cultural alignment, and shared time zones.
Given Mexico’s geographical proximity to the United States and its growing presence as a nearshoring destination for North American companies, it’s possible that “Mexshoring” could be a term used informally to describe nearshoring activities specifically focused on Mexico.
In essence, Mexshoring would likely involve companies outsourcing their operations, such as manufacturing, customer support, or IT services, to Mexican service providers or partners. The choice of Mexico as a nearshoring destination can offer several advantages, including cost savings, cultural affinity, and easier collaboration due to the proximity and shared time zones.
